Renewable energy promotion: Usual claims and empirical evidence

Abstract

Given the alleged environmental and socioeconomic benefits of electricity from renewable energy sources (RES-E), their public promotion has become a policy priority for governments all over the world in the past. However, in those countries with an already large penetration of renewable energy in their electricity mix, there is substantial concern about the policy costs of support for RES-E. Limiting those costs has also become a policy priority both for developed and developing countries. Academia has tried to respond accordingly, and there is already a voluminous literature on the analysis of the effectiveness and costeffectiveness of RES-E support. This literature has been both theoretical and empirical. The later has been based on different methodologies, including case studies and model simulations. However, there are still some general claims which are largely unsupported with empirical data. Other statements are at least arguable or refutable on theoretical grounds. Based on a throughout review of the theoretical and empirical literature, the aim of this chapter is to discuss some usual claims about renewable energy promotion. The results of the analysis suggest fruitful avenues for further research on the topic.